PEMEX and Union Begin Salary Review

The PEMEX union began negotiations with the NOC to define their salary increase for 2022 and 2023. Moreover, Mexico’s oil production recovered in July, according to CNH’s data. Meanwhile, a PEMEX pipeline explodes in Veracruz.

Ready for more? Here is the Week in oil and gas!

Mexico

Oil Union and PEMEX Start Salary Review For the 2022-2023

PEMEX informed that it initiated the 2022-2023 salary review with the Mexican Oil Workers Union (STPRM). The meeting was attended by representatives of the Ministry of Labor and Social Welfare (STPS). In 2021, the oil union negotiated the 2021-2022 Collective Bargaining Agreement to offer a 3.40 percent increase in salaries and 1.76 percent increase in benefits, in doing so avoiding a strike.

Mexico’s Oil Production Recovers in June      

Oil production in Mexico recovered from its drop in April in June of this year, according to data from the National Hydrocarbons Commission (CNH), as production reached 1.62MMb/d. The increase in production was driven by PEMEX, achieving a 0.5 percent increment.

PEMEX Pipeline Explodes in Veracruz    

A PEMEX pipeline in Veracruz exploded due to a liquefied petroleum (LP) gas leak, caused by an alleged clandestine theft in the municipalities of Tuxtlilla and Chacaltianguis. The explosion killed one person and left two seriously injured, as reported by Erick Cisneros Burgos, Minister, the Government of Veracruz.

Lakach to Strengthen Natural Gas Development: Rystad Energy      

PEMEX announces that after 6 years of being suspended, the deepwater Lakach project will be resumed in collaboration with the American company New Fortress Energy, made possible through a US$1.5 billion investment. The consulting firm Rystad Energy found that Lakach will strengthen Mexico’s natural gas projects, as Mexico risks becoming increasingly dependent on imports from the US.

CNH Authorizes Wintershall Dea to Spud Exploration Well         

Mexico’s National Hydrocarbons Commission (CNH) approved the spudding of five exploratory wells, one operated by Wintershall Dea and the other four by PEMEX’s E&P unit. The German company’s project near the coastline of Tabasco holds prospective resources of 78.5MMboe.

International

Energy Crisis Intensifies as Natural Gas Prices Surge

The energy crisis sparked by Russia’s invasion of Ukraine intensified today as gas prices skyrocketed and the US warned of a fresh surge in oil prices, unless major importers agreed to cap the amount they pay for Russian crude. Meanwhile, Europe continues to face challenges, as strong reliance on Russian gas causes concerns for the upcoming winter months.